Mr. Praveen Gupta reports

CLIFFSIDE CAPITAL LTD. REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS AND UPDATE ON STRATEGIC REVIEW BEING CONDUCTED BY THE INDEPENDENT COMMITTEE

Cliffside Capital Ltd. has released financial results for the second quarter of 2023. The company reported the following:

• Net income before taxes of $100,000 for the quarter ended June 30, 2023;
• Net financial revenue before credit losses, excluding mark-to-market gain (loss) on derivative financial instrument, remained relatively flat at $4.8-million compared with Q2 2022;
• Decline in net finance receivables by 20.3 per cent to $145.2-million compared with Q2 2022;
• Provision for credit losses remained relatively flat at $4.3-million and also as a percentage of average gross finance receivables compared with six months ended June 30, 2022.

Under the current economic environment characterized by higher inflation and higher benchmark interest rates, it is expected that delinquency will remain elevated over the next several quarters; however, management is focused on pro-active portfolio management for better performance under these challenging economic circumstances.

The special committee, composed of independent members of the board of directors of the company, with the assistance of outside financial and legal advisers, specifically Raymond James Ltd. and Gardiner Roberts LLP, has fully explored the sale of the company, its business and/or the three partnerships which it owns as potential strategic alternatives available to the company with the goal of maximizing value for Cliffside shareholders and other stakeholders of the company.

At this time, no third party contacted has expressed an interest in entering into a potential strategic transaction. The independent committee is continuing to explore other strategic alternatives for the company. The company does not intend to comment further until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws.

Further information on Cliffside's financial results can be found at the Cliffside website, and a copy of the condensed consolidated financial statements for the quarter ended June 30, 2023, prepared in accordance with international financial reporting standards, as issued by the International Accounting Standards Board, including international accounting standard 34 (Interim Financial Reporting), and the corresponding management's discussion and analysis, will be available under the company's profile on SEDAR+.

About Cliffside Capital Ltd.

Cliffside is focused on investing in strategic partnerships with parties which have specialized expertise and a proven record in originating and servicing loans and similar types of financial assets. Cliffside's strategy is to generate revenue as an investor, affording its shareholders an opportunity to invest in the growing alternative lending sector with the potential for attractive yields and minimal operational risk while earning a reliable total return.

We seek Safe Harbor.